Fixed benefits

Fixed benefits

Payments to a beneficiary that are paid in fixed preset amounts and are not variable.

Fixed Benefits

In annuities and insurance, benefits that guarantee the annuitant a fixed return for the life of the annuity. Like any annuity, the annuitant buys into a policy, either with a lump sum or premiums, over a period of time. When the annuitant reaches a certain age or retirement (whichever is greater), he/she begins to receive the fixed benefits. Generally speaking, the insurance company issuing an annuity with fixed benefits invests the premiums in low-riskinvestment vehicles, such as bonds. This results in a smaller likelihood that the insurance company will be unable to make the payments, but also exposes the annuitant to inflation risk. See also: Variable benefits.

Elegant Group Chairperson, Mohamed Shaheen, said that the agricultural and industrial sectors are currently considered a safe mechanism for investment, with returns exceeding the fixed benefits of bank savings, especially with the state's efforts to encourage direct investment and decrease bank interest rates during the coming period.

At a time when many seniors are struggling to make ends meet, living on fixed benefits and faced with rising costs for housing and other necessities, the Protection of Social Security Benefits Restoration Act is needed.

The insured may have an amount left to pay after the plan pays the fixed benefits. Both the agent and his or her client should read through the schedule of benefits in order to understand what will be covered and how much the plan will pay for various services.

of Canada, et al), the English Court of Appeals held that a reinsurance program that offered fixed benefits to an insurer that was exposed to variable liabilities nevertheless adhered to the insurance requirement of demonstrating an insurable interest.

This indicates that these companies can no longer afford to sustain their current defined benefit plans, where companies assume responsibility for paying out fixed benefits, unless some changes are effected.

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